Round hummer is comparing two different capital structure of equity plan. Plan 1 and a Levered plan
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Question:
Round hummer is comparing two different capital structure of equity plan. Plan and a Levered plan Under plan the company would have share of stock outstanding, under plan two there will be share of stock outstanding and $ million in debt outstanding the interest rate on the debt is and there are no taxes what the breakeven Ebit number above which Round Hummer is consider issuing the debt?
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